Category: Stock Markets 2011
The analysis published under this category are as follows.Monday, September 19, 2011
Second Greek Bailout May Not Stabilize Markets / Stock-Markets / Stock Markets 2011
Financial markets tend to get fixated on a small number of issues, which often leads to questionable decision making for investors. It is important to look at a scenario where the second Greek bailout package is approved. The immediate question for the markets would become, “Now what?” The odds are fairly low approval of the second bailout will stabilize the bond, currency, and stock markets for an extended period of time. The excerpts below shed light on this concept:
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Monday, September 19, 2011
Will Ben Bernanke and the Fed Pump the Stock Market? / Stock-Markets / Stock Markets 2011
This is going to turn out to be one of the most interesting weeks of the year for two reasons - first the market is putting itself in a position to turn back up after spending a month now going sideways and building a base and secondly there is a Federal Reserve Open Market Committee meeting on Tuesday in which Ben Bernanke may announce another new massive money pump to try to force another big stock market rally.
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Monday, September 19, 2011
Stock Market Waiting Patiently! / Stock-Markets / Stock Markets 2011
I'm looking forward to getting past this correction. Let's begin this weekend analysis with a review of Friday's action. You will remember that I said my favorite Fibonacci setups are the 78.6% retracement and the 161.8% external retracement. I commented that they were almost always good for at least a scalp. Friday was a day when they were good for more than a scalp.
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Sunday, September 18, 2011
Stock Market Intermediate Support Is Holding / Stock-Markets / Stock Markets 2011
SPX: Very Long-term trend - The very-long-term cycles are down and, if they make their lows when expected, there will be another steep and prolonged decline into 2014 after this bull market has run its course.
SPX: Intermediate trend - The market strength which was experienced last week attests to the seemingly impregnable support which exists in the low 1100's. With the market volatility being what it is, the market profile may change again, but it has become doubtful that the bottoming 3-yr cycle will cause the index to make a new low.
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Sunday, September 18, 2011
Stock Market, this is Not 2008 / Stock-Markets / Stock Markets 2011
It was a wild week for sure. The SPX started the week by declining about 1.5% to 1136 and ended the week hitting 1220 for a 5.4% gain. The Central Banks announced three separate USD swap programs mid-week, to increase liquidity in Europe. There was also lots of talk of an ECB TALF program. In the mean time, in the US, economic reports were decidedly negative. On the plus side: business inventories improved, along with, the current account deficit, consumer sentiment, the Philly FED, and the M-1 multiplier rose. On the negative side: import/export prices declined, along with, retails sales, the CPI/PPI, the NY FED, industrial production, capacity utilization, the monetary base and the WLEI. The budget deficit increased, as did weekly jobless claims. If you are counting that’s five positives and twelve negatives. Nevertheless, the SPX/DOW were +5.05%, and the NDX/NAZ gained 6.45%. Asian markets lost 0.4%, European markets gained 4.2%, the Commodity equity group 0.3%, and the DJ World index gained 2.9%. Next week we have the much awaited FOMC meeting, the yet to be interesting Housing reports, and Leading indicators.
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Saturday, September 17, 2011
Stock Market Where We're At... / Stock-Markets / Stock Markets 2011
This is the bigger picture question we have to deal with. It's always fun to look only at the little picture, because most people are so short-term oriented these days, and really, who can blame them with how fast the markets move. They want to know what's going to happen today, and who cares about tomorrow. Who cares about months from now!! I do, and so should all of you. For this reason, I thought we'd take a look at things the way they are now, and then decide what's around the corner for us all.
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Saturday, September 17, 2011
China Market Action Question Stock Rally’s Staying Power / Stock-Markets / Stock Markets 2011
Regardless of what happens in Europe, stocks are not the place to be if a recession is around the corner. The odds of a recession are increasing. A bearish economic outlook is supported in Friday’s Wall Street Journal:
Read full article... Read full article...“It feels like a recessionary environment. What they call it later on I can’t tell you,” says Bart van Ark, chief economist of the Conference Board, who put the odds of recession at 45%. Since 1988, every time the Conference Board’s estimate of the probability of recession topped 40%, a downturn followed shortly thereafter.
Friday, September 16, 2011
Why Has the Stock Market Yet to Crash? / Stock-Markets / Stock Markets 2011
An Old Type of Business-As-Usual
One could easily misperceive the 17-years of “entitlement” rally from 1982 through 1999 as normal and representative of the type of “certainty” necessary to carry out business as usual.
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Thursday, September 15, 2011
SPXU Still in Play / Stock-Markets / Stock Markets 2011
Pro Shares Ultra Pro S&P 500 (UPRO) is a triple leveraged fund that seeks a 300% return on the performance of the S&P for a single day. Conversely, The Pro Shares Ultra Pro Short S&P 500 (SPXU) seeks a triple leverage or 300% return on the inverse performance of the S&P 500. If you believe as I do that we are setting up for a leg down on the S&P then SPXU is the best way to profit from this trade.
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Wednesday, September 14, 2011
S&P 500 Relative to Europe is Raising Red Flags for Bulls / Stock-Markets / Stock Markets 2011
The S&P 500 has been regarded as a relative “safe haven” given:
- The high probability of a default by Greece.
- Concerns debt markets will focus on Italy next.
- Weakening economic data in Europe.
Tuesday, September 13, 2011
How to Beat the Stock Market Mania of Pessimism / Stock-Markets / Stock Markets 2011
Two weeks ago, I opined that the biggest obstacle a stock market investor faces today is “headline risk.”
That is, relentless media negativity.
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Tuesday, September 13, 2011
Oversold Stock Market Bounces... / Stock-Markets / Stock Markets 2011
This morning I spoke about how the 60-minute index charts were oversold, and thus, it wouldn't be very wise to short the gap down that was going to take place due to more bad news in Europe. The gap down took place, and then the market went back and forth, down as many as 150 Dow points before reversing late in the day. At the same time those 60-minute charts got oversold, the PowerShares DB US Dollar Index Bullish (UUP) chart got overbought. It wasn't on the 60-minute chart, but instead, on its daily chart. It had a 70 RSI reading. We all know that 70 RSI's are not the best conditions for further upside most but not necessarily all of the time. In this particular case, that was true for the dollar, which remains very bullish bigger picture on its chart. That was it for the very short-term, and thus, the reversal on all sides here as the dollar fell late and the market surged as that fall took place. It was a nasty black candle on the UUP today with the RSI still at 71 on its daily chart. This is an indication that the market is about to engage in more upside action in those nasty bigger-picture bear-flag patterns.
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Monday, September 12, 2011
The Chart That Predicted '87 Stock Market Crash Now Predicts Major Rally / Stock-Markets / Stock Markets 2011
I just got my hands on something juicy...
We've been talking about technical analysis and being able to read charts here at Smart Investing Daily for the past couple of weeks.
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Monday, September 12, 2011
What Social Mood Is Saying About the Stock Market / Stock-Markets / Stock Markets 2011
Social mood is absolutely horrible right now. In my experience as a trader I do not recall a similar time frame in my life. Social mood has deteriorated to the point that it would not surprise me to see two grown men come to blows over a fantasy football draft. Oh wait, that happens every year!
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Monday, September 12, 2011
Stock Market Downward Pressure Increases in Sepember / Stock-Markets / Stock Markets 2011
As the S&P 500 approaches the expected low in late September, downward pressure is increasing and volatility continues to expand.
The VIX, which moves in the opposite direction to the S&P 500, has risen from a medium risk level of 24 in early August into the high risk band of over 33. At the same time, the stock index dropped from 1290 to 1120 (Chart 1).
Sunday, September 11, 2011
Stock Market Almost Ready to Fall Off a Cliff / Stock-Markets / Stock Markets 2011
SPX: Very Long-term trend - The very-long-term cycles are down and, if they make their lows when expected, there will be another steep and prolonged decline into 2014.
SPX: Intermediate trend - After last week, it is likely that the downtrend continues. It has a tentative projection to 1065.
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Sunday, September 11, 2011
Monday Stock Market Pivot Point / Stock-Markets / Stock Markets 2011
In 1940 Jesse Livermore wrote one of the classic books on the workings of the Stock Market “How to Trade in Stocks. By this time Jesse Livermore had developed a mathematical formula that incorporated what he termed “Pivot Points” in determining when to initiate a buy or a sell. When he calculated pivot points, the pivot point themselves, were the primary support or resistance of the asset. This meant that the largest price movement (either up or down) was expected to occur at this point. The other support and resistance levels were less influential, but still had the ability to generate significant price movements.
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Sunday, September 11, 2011
Will Stock Markets Crash This Week? Are Years of Reckoning Dead Ahead? / Stock-Markets / Stock Markets 2011
Sure the market could crash this week and deservedly so, but it doesn't really matter because it's just a ride.
Frankly, I could not care less whether the S&P crashes back down below 666 or if it catapults its way to new heights north of 2000. At the end of the day, it's just a ride.
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Sunday, September 11, 2011
Stock Market Meltdown, Bear Market Remains Probable / Stock-Markets / Stock Markets 2011
The week started off with a meltdown in Europe. They lost 4.35% on monday while the US markets were closed. When the US market opened on tuesday, it gapped down losing about 3%, made the low for the week, rallied nearly 6% from that low, then ended the week with another meltdown in Europe (-3.20%) closing about 1% above the low for the week. Economic reports for the week were sparse with positives edging out negatives four to three.
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Saturday, September 10, 2011
Moving Average Sell Signals on the S&P Stock Market Index / Stock-Markets / Stock Markets 2011
Only twice in the last 11 years (2000 & 2007) have all of my directional weekly moving averages turned down into a negative crossing, which subsequently confirmed that an acute, intermediate-term bear phase was underway.
In 2000, after the downside moving average inflection point, the S&P 500 declined from 1380 to 768 (-45%), and in 2007 the SPX declined from 1475 to 666.79 (-55%).
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